Cabling systems manufacturer Nexans has secured a frame agreement with BP Exploration & Production for deepwater umbilical projects in the Gulf of Mexico worth up to $300m.
The agreement covers the design, manufacture and supply of bespoke umbilicals that will carry fluid, power, control and telecommunications services for new subsea oil and gas projects or replacements, in water depths up to 1,980m.
The frame agreement is initially for one year but BP has the right to extend the agreement for an additional four-year period.
During the term of the agreement, Nexans could deliver more than 200km of umbilical products to BP.
Nexans executive vice-president Yvon Raak said that the deal secures the company’s position as a key strategic supplier of umbilicals for the Gulf of Mexico.
“Nexans has demonstrated its outstanding project execution capability, not only in solving technical challenges but also in ensuring on-time delivery. With this new agreement, we have also demonstrated that we can provide a cost-effective solution to the Gulf of Mexico,” Raak said.
The umbilicals for the Gulf of Mexico will be designed and manufactured at Nexans’ specialist facility in Halden, Norway.